Employer Cost Calculator Germany 2026

Calculate total cost per employee

50020.000
Employer contributions
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%
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Total employer cost

€3,658.50

Gross: €3,000.00 · Additional cost above gross: €658.50

Employee
Income tax (Lohnsteuer)€283.48
Solidarity surcharge€0.00
Health insurance (employee)€244.50
Pension insurance (employee)€279.00
Unemployment insurance (employee)€39.00
Care insurance (employee)€72.00
Net salary€2,082.02
Employer
Health insurance (employer)€244.50
Pension insurance (employer)€279.00
Unemployment insurance (employer)€39.00
Care insurance (employer)€54.00
Sick pay compensation (U1)€33.00
Maternity pay (U2)€7.20
Insolvency contribution (U3)€1.80
Additional cost above gross€658.50

Frequently Asked Questions

What does an employee really cost the employer?
As a rule of thumb, total employer costs are roughly 20–22% above the gross salary. This includes the employer's share of health (~7.9%), care (~1.8%), pension (9.3%) and unemployment insurance (1.3%), as well as the U1, U2 and U3 levies.
What are the U1, U2 and U3 levies?
U1 (sick pay levy) reimburses small employers for a portion of continued salary payments during sick leave. U2 (maternity) finances maternity benefits. U3 is the insolvency contribution. Exact rates vary by health insurer and company size.
Does the employer also pay church tax?
No. Church tax is borne exclusively by the employee. The employer only withholds it and remits it to the tax office on the employee's behalf.
How do I calculate costs for a part-time employee?
Simply enter the proportional gross salary. The contribution rates remain the same; the contribution ceilings are generally not reached for part-time employees.

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